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    Project finance as a driver of economic growth in low-income countries

    Kleimeier, S. and Versteeg, Roald J. (2010) Project finance as a driver of economic growth in low-income countries. Review of Financial Economics 19 (2), pp. 49-59. ISSN 1058-3300.

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    This study investigates the role of project finance as a driver of economic growth. We hypothesize that project finance is beneficial to the least developed economies as it is able to compensate for a lack of domestic financial development. The contractual structure unique to project finance leads to better investment management and governance. Investigating 90 countries from 1991 to 2005, we find support for our hypothesis. Results show that project finance fosters economic growth and that its effect is strongest in low-income countries, where financial development and governance is weakest.


    Item Type: Article
    Additional Information: NOTICE: this is the author’s version of a work that was accepted for publication in Review of Financial Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Review of Financial Economics, 19(2), April 2010, DOI:10.1016/j.rfe.2010.01.002
    Keyword(s) / Subject(s): Project finance, Economic growth, Economic development, Financial development, Developing countries
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Roald Versteeg
    Date Deposited: 29 May 2013 14:54
    Last Modified: 02 Aug 2023 17:04

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